Indian Solar Tariffs Overdue A Major Correction

Indian solar tariffs are overdue a major correction and many smaller players are likely to drop out of the sector over the next few years, according to panellists at Intersolar India 2017 in Mumbai.

While Vinay Rustagi, managing director of consultancy firm Bridge to India, framed his comments by predicting the future is still “very bright” for the Indian solar sector, he listed a number of challenges bearing over the industry at present.

The low tariff situation has been partly driven by a major lull in tenders and a frustrating lack of visibility in auction timelines and roadmaps. Rustagi said tariffs remained relatively stable when auctions were coming thick and fast between January and September 2016, but the prices “started falling off the cliff” once the balance between demand and supply for projects became unbalanced.

“From back end of 2016 onwards, the auctions started drying up, the private sector got more aggressive and anxious,” he added. Read More…